Hong Kongers Pony Up for Early iPad 2

By Alice Truong

Even without an official release date for the iPad 2 in Hong Kong, some residents will have the product in their hands by Sunday – two days after it launches in the U.S.

Vendors in the bustling gadget market in Hong Kong’s Sin Tat Plaza, known colloquially as the Mobile Phone Mall, are promising Apple’s latest product to early adopters. Digital Action Telecom has already received 200 orders, said sales manager Kurt Lo. He said eight couriers in New York, Chicago, San Francisco and Los Angeles will hop on planes to Hong Kong after securing about 200 iPads and he will get the device to eager consumers by March 13.

The iPad 2 will first be released in the U.S. on Friday, starting at $499 for the base model. In the Asian-Pacific region, the only confirmed releases are in Japan and Australia, on March 25, and prices are not set yet. An Apple representative said there is no date set for a Hong Kong release.

That means Hong Kongers who want to secure an early iPad 2 should expect hefty premiums.

Mr. Lo said he hasn’t yet decided what he’ll charge for the gray-market devices, but his customers have put down a 1,000 Hong Kong dollar (US$128) deposit.

“We have no expectations for prices,” Mr. Lo said. “We will look at market conditions.”

When the original iPad was launched, Mr. Lo said customers paid about HK$7,000—almost twice what it retailed in the U.S. at the time—for an early one. An Apple representative declined to comment on gray-market activity.

Other vendors also haven’t set prices. Lollipop Telecom, for instance, said it will procure about 10 iPads March 16-18 and will also look to the market before determining a price.

But Men Tone Digital Telecom is more ambitious. With about 100 orders, the store has set six price points, ranging from HK$6,000 to HK$11,000, for the iPad 2′s various versions, which differ in terms of storage capabilities and connectivity. Customers have put down half the cost as a deposit. Jealousy Kwok, a Men Tone shopkeeper, said about 10 orders are from Hong Kong. The rest are from elsewhere in Asia, including India and Singapore.

“Everybody wants their Apple products,” Mr. Kwok said. “They are willing to pay our prices to have the iPad earlier.”